In the recent year or so, the word ‘bitcoin’ was pretty much causing a buzz in all financial circles. Wholly digital yet managed to reach $2000 in its prices. So many of us asked: is bitcoin an investment risk worth taking?
What is “Bitcoin”?
Bitcoin is digital currency that was something that needed to be ‘mined’. In the early days of this currency, it was something that users had to ‘earn’ by answering a sort of algorithm or math problem that was given every X amount of hours. Now, bitcoin is something that is primarily bought—if you can afford it.
This digital currency has seen quite an explosion of interest. There have even been people who sold everything they ever owned and bought its worth in bitcoin. While some would call them silly for such a massive trust in a currency that is being blocked in several countries, others may call the smart for buying in while it is still possible.
What Makes a ‘Good’ Investment?
Before you consider buying into a certain type of investment, it is important to determine if it falls under certain positive categories. Consider asking yourself these questions:
- Is it viable for a long-term source of income?
- Is it realistically sustainable?
- Does it have suitable market value with proper exchange?
The biggest issue that most people have with bitcoin is the fact that it is entirely digital in its existence. It has no real world equivalent. The worth that it presently has changes every second that it is in the market, making it highly volatile. Most experts are expressing that bitcoin is a bubble market waiting to burst. When it does burst, those that are enjoying the incredible high it is on can expect massive losses.
Most people that are smart about their investment buy a bit and sell when they have already recouped their initial expenditure.
Whenever you are thinking of doing an investment, it would be important that you do your homework thoroughly. Never forget that every investment opportunity is a gamble of sorts. While history will determine what has been a wise or foolish gamble, this does not even give us the assurance of which instances will be the same. Sadly, no two investments are ever truly the same as time goes by. We believe that while bitcoin is something that you can invest in, it should not be your primary source of income.
Do you believe that bitcoin is an investment risk worth taking?